GLOBAL MARKETS: Currency mayhem
US currency accusation has driven an even bigger wedge between the world’s largest economies
China’s central bank said on Tuesday that Washington’s decision to label Beijing as a currency manipulator would "severely damage international financial order and cause chaos in financial markets". The US currency accusation, which followed a sharp slide in the yuan to beyond ¥7/$, has driven an even bigger wedge between the world’s largest economies and crushed any lingering hopes for a quick resolution to their year-long trade war.
Warren Buffett’s Berkshire Hathaway reported a jump in second-quarter net profits while its cash pile reached a record $122bn. The sprawling investment conglomerate said profits in the second quarter climbed 17% from a year earlier to $14.1bn. Buffett has struggled to clinch a significant takeover in recent years. In a letter to shareholders in February he warned that prices for businesses were "sky-high" and that the group is likely to invest in stocks as it hopes for an "elephant-sized acquisition".